Carbon trading: The first hurdle

Europe’s emissions-trading system, the world’s largest carbon cap-and-trade scheme, survived a near-death experience on February 19th. The environment committee of the European Parliament voted to support a plan proposed by the European Commission, the European Union’s executive arm, to take 900m tonnes of carbon allowances off the market for up to five years. Had it rejected the plan, the market might have collapsed.
The proposal would reduce some of the massive overcapacity in the ETS, which has driven the price of carbon down from almost €30 a tonne in 2008 to about €5 this year……………………………………Full Article: Source